I have a self-directed RRSP at a Canadian financial institution. In this case it happens to be a credit union.

The RRSP account is holding a corporate bond. I pay the institution a fee for administering the account. Does the bond appear on the books of the credit union as an asset they can borrow against? Do they benefit from my "deposit" apart from the fees they charge me?

1 Answer 1


It is not the asset of the credit union. They cannot borrow against it.

However, this is also not a deposit (since you didn't give them cash), so it doesn't affect their fractional reserve liabilities. In essence - their main benefit is the fee from this account.

  • All true, but Canada no longer has reserve requirements. Plus, I bet the CU made quite a bit from the spread when you bought the bond. Those are quite high in Canada.
    – brian
    Commented Nov 25, 2014 at 0:39
  • Canada no longer has reserve requirements! (what I learned)
    – carbontax
    Commented Jan 14, 2015 at 14:01

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